Types of instalments

There are different types of instalments that suit a variety of investors with various risk profiles. The table below summarises the types of instalments on issue, their features and what sort of investors suit these types of products.

Types of instalments Features Regular geared             (40% - 65%) Highly geared
(65% -110%)

Ordinary (Vanilla)
  • 3– 36 month terms 
  • 4th letter code 'I' or 'J'
  • Medium to long term investors
  • SMSFs
  • Writing call options
  • Short-term traders
  • Trading for dividends
Rolling
  • 5 - 15 year terms
  • Default gearing level reset on a periodic basis (12, 18 or 24 months)
  • 4th letter code 'I', during reset period 'D'
  • Medium to long term investors
  • Manage risk on a 12 month basis
  • SMSFs
  • Trading for dividends
  • Short-term traders
  • Trading for dividends
Self Funding (SFI)
  • 5 or 10 year terms
  • dividends used to reduce the loan amount
  • Annual interest charge added to the loan amount
  • 4th letter code 'S'
  • Medium to long term investors
  • SMSFs
  • Writing call options

N/A

The disclosure document outlines the terms and conditions for each instalment series. You should be familiar with those prior to trading. You can access information on how to find a disclosure document on the ASX website. Alternatively, you may contact your adviser or the warrant issuer.

Learn more about instalment, visit our online warrants class or view alternative educational offerings.